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WHAT IS DRHP IN IPO

A red herring is a preliminary prospectus filed with the SEC, usually in connection with an IPOu2014excludes key details of the issue, such as price and number of shares offered. Information in a red herring is subject to change and the SEC merely ensures all proper information is disclosed.

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WHAT IS DRHP IN IPO

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  1. WHAT IS DRHP IN IPO? DRHP EXPLAINED In recent times, more and more IPOs have been coming into the Indian stock markets and this simply means that a large number of investors have been vying to invest in IPOs. If you are searching for an upcoming IPO, it becomes more than necessary to have proper knowledge about various technical terms involved in such a scenario. This step is necessary because this would help you serve the purpose of making long-term and short-term gains and not having such information could make you lose your investment. Among various terms, DRHP is a commonly used term that must need to be decoded for better insights into the stock markets. According to the top 10 stock brokers in India, it is a major tool that tends to help investors in making sound investment decisions. Let’s find out what is DRHP and what its major elements. What is DRHP (Draft Red Herring Prospectus)? DRHP stands for Draft Red Herring Prospectus. It plays a pivotal role in helping investors gain truthful insights about investing in a specific company’s IPO. It is maintained as a document that needs to be filed by companies as stated by DRHP. The next step is that SEBI reviews this DRHP document and makes sure that the company has made all necessary disclosures. It should be kept in mind that the document is a kind of draft which SEBI has made it mandatory for companies to make all-important revelations. The purpose of this step is to help investors know all the necessary information about the company they are looking to invest in. This DRHP document entails important details about the company like about the firm, its business, concerned industry, existing shareholders, its financials, and other such crucial information which usually doesn’t available to the general public.

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